30.05.2024 15:30:00

Where Will Roku Stock Be in 1 Year?

While the broad market is soaring to all-time highs, Roku (NASDAQ: ROKU) stock has been left behind.Shares of the streaming distributor fell sharply on its fourth-quarter earnings report in February and have only drifted lower since then, as the company is still unprofitable on the basis of generally accepted accounting principles (GAAP) and the media industry is in a volatile state. Legacy media companies, including Paramount Global, Warner Bros. Discovery, and Disney have made significant cutbacks to push toward profitability.That's weighed on Roku's performance as it depends on its media and entertainment partners for a significant portion of its ad revenue. Naturally, Roku is a good platform for these services to advertise their programs and reach new subscribers, but the spending cuts have affected Roku as well, and it's one of the reasons the stock has struggled.Continue readingWeiter zum vollständigen Artikel bei MotleyFool